The Genex Power Ltd (ASX: GNX) share price is taking off on Monday after the company confirmed a $300 million takeover bid and released its latest quarterly update.
The Genex share price launched 51.8% on open to reach 20.5 cents. At the time of writing, it has slipped slightly to trade at 19.5 cents â representing a 44.44% gain.
Letâs take a closer look at whatâs driving the renewable energy companyâs stock on Monday.
Genex share price takes off on takeover bid
Itâs shaping up to be a huge day for the Genex share price, which rocketed more than 50% in early morning trade.
The gains came after the company confirmed it had received a takeover bid valuing it at more than $300 million and representing a 70% premium on Fridayâs close.
The 23-cent per share cash bid was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquharâs Skip Capital and Stonepeak Partners.
The companyâs board noted the acquisition proposal was unsolicited and said it âhas not yet formed a view on [the bidâs] meritsâ.
The bid comes after Skip Capital snapped up a 19.99% stake in Genexâs stock last week.
Genex posts record revenue and cash flow
It certainly makes for an exciting period for the company, which posted its first full year of positive cash flow this morning.
Genex’s operating cash flow for financial year 2022 came to $4 million. Its solar farms brought in record unaudited revenue of $26.1 million in that time while the company reported $8.6 million of revenue for the June quarter.
Genex benefited from strong electricity prices last quarter while construction continued at its Kidston Pumped Hydro Project and Bouldercombe Battery Project.
The companyâs renewable energy generation and storage portfolio is worth more than $1 billion.
The post Genex share price rockets 50% on confirmed takeover bid appeared first on The Motley Fool Australia.
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More reading
- Genex share price in focus amid Atlassian co-founderâs $300m takeover bid
- Here’s why ASX renewable shares slipped in June
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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